Startup Expenses

Startup Expenses
Enter your company name here
Sources of Capital
Owners' Investment (name and percent ownership)
Jennifer Bartow $ 10,500
Other investor
Other investor
Other investor
Total Investment $ 10,500
Microsoft: Totals are calculated automatically.
Bank Loans
Bank 1 $ 350,000
Bank 2
Bank 3
Bank 4
Total Bank Loans $ 350,000
Other Loans
Source 1 $ –
Source 2
Total Other Loans $ –
Startup Expenses
Buildings/Real Estate
Purchase $ –
Remodeling 20,000
Total Buildings/Real Estate $ 20,000
Leasehold Improvements
Microsoft: Remodeling expenses for leased premises.
Item 1 $ –
Item 2
Item 3
Item 4
Total Leasehold Improvements $ –
Capital Equipment List
Furniture $ 5,000
Equipment 10,000
Other 500
Total Capital Equipment $ 15,500
Location and Admin Expenses
Rent & Related Costs $ 6,000
Utility deposits 600
Legal and accounting fees 5,000
Prepaid insurance
Pre-opening salaries
Total Location and Admin Expenses $ 11,600
Opening Inventory
Category 1 $ –
Category 2
Category 3
Category 4
Category 5
Total Inventory $ –
Advertising and Promotional Expenses
Advertising $ 4,550
Signage 500
Other/additional categories
Total Advertising/Promotional Expenses $ 5,050
Other Expenses
Zen Planner Software $ 117
Other expense 2
Total Other Expenses $ 117
Reserve for Contingencies $ –
Working Capital
Microsoft: This value is calculated in the 12-month cash flow spreadsheet.
Microsoft: Remodeling expenses for leased premises. Microsoft: Totals are calculated automatically. $ 1,000
Summary Statement
Sources of Capital
Owners' and other investments $ 10,500
Bank loans 350,000
Other loans
Total Source of Funds $ 360,500
Startup Expenses
Buildings/real estate $ 20,000
Leasehold improvements
Capital equipment 15,500
Location/administration expenses 11,600
Opening inventory
Advertising/promotional expenses 5,050
Other expenses 117
Contingency fund
Working capital 1,000
Total Startup Expenses $ 53,267
Security and Collateral for Loan Proposal
Collateral for Loans Value
Microsoft: Lower of cost or market value.
Real estate $ –
Other collateral
Other collateral
Other collateral
Your name here
Other owner
Other owner
Loan Guarantors (other than owners)
Loan guarantor 1
Loan guarantor 2
Loan guarantor 3

Notes on PreparationNote: You may want to print this information to use as reference later.To delete these instructions, click the border of this text box and then press the DELETE key.Nearly everyone who has ever started a business has underestimated the costs, and then faced the danger of running with inadequate capital reserves. The key to avoiding this pitfall is to adopt a rigorous approach to your research and planning.Our Startup Expenses worksheet will lead you through the process.EXPENSES – Begin by estimating expenses. What will it cost you to get your business up and running? The key to accuracy here is attention to detail. For each category of expense, draw up a list of everything you will need to purchase. This will include both tangible assets (for example, equipment, inventory) and services (for example, remodeling, insurance). Then determine where you might purchase these goods or services. Research more than one vendor; i.e.: comparison shop. Do not look at price alone; terms of payment, delivery, reliability, and service are also important. CONTINGENCIES – Add a reserve for contingencies. Be sure to explain in your narrative how you decided on the amount you are putting into this reserve. WORKING CAPITAL – You cannot open with an empty bank account. You need a cash cushion to meet expenses while the business gets going. Eventually you should do a 12-month cash flow projection. This is where you will work out your estimate of working capital needs. For now, either leave this line blank or put in your best rough guess. After you have done your cash flow, you can come back and enter the carefully researched figure.SOURCES – Now that you have estimated how much capital will be needed to start, you should turn your attention to the top part of this worksheet. Enter the amounts you will put in yourself, how much will be injected by partners or investors, and how much will be supplied by borrowing.COLLATERAL – If you will be using this plan to support a bank loan request, use the section near the bottom to show what assets are offered as collateral to secure the loan, and give your estimate of the value of these items. Be prepared to offer some proof of your estimates of collateral values.